The board of Hines Global REIT Inc., a publicly registered non-traded real estate investment trust, has unanimously approved the company’s plan of liquidation. Shareholders will vote on the plan the company’s upcoming annual shareholder meeting scheduled on July 17, 2018.
The company currently expects that initial shareholders will have received aggregate distributions totaling between $15.62 to $16.62 per share upon successful execution of the plan of liquidation. Shares were originally sold for $10.00 each.
The distribution amount includes $5.62 per share of operating distributions received or to be received from November 2009 through June 2018, as well as the $1.05 per share special distribution from January 2018, and the $0.12 per share return of invested capital distributions for the six months ending June 30, 2018.
In addition, the board estimates that the range of liquidating distributions will total between $8.83 and $9.83 per share. The company plans to make regular distributions as it seeks shareholder approval of the liquidation plan and intends to make multiple liquidating distributions.
Hines Global REIT, which was launched in December 2008, raised $3.1 billion in investor equity through April 2018. In total, the Company acquired interests in 45 properties, representing approximately 17.5 million square feet in the U.S. and abroad in Great Britain, Germany, France, Poland, Russia and Australia.
The company has made several asset dispositions, including selling properties for a gross sales price of $998 million in 2017, as well as completing the sale of One Westferry Circus for a gross sales price of $153.5 million on April 12, 2018.
“Because we’re seeing strong capital markets interest at the portfolio, sub-portfolio, and individual asset level for our remaining high-quality assets, we believe the time is right to recommend a plan of liquidation for the company in an effort to bring liquidity and maximize value to our shareholders,” said president and CEO Sherri Schugart.
Hines Global REIT’s multibillion dollar portfolio currently consists of 33 assets, representing 13.9 million square feet that is 90 percent leased. Approximately 61 percent of the properties are located throughout the United States and 39 percent are located internationally.